Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d, and the applicable legislation, the company Poslovni sistem Mercator, d.d., hereby announces the following:

Poslovni sistem Mercator d.d. (“Mercator”) has already informed the public on 16 April 2021 and 23 April 2021 that Fortenova grupa d.d. (“Fortenova”) has provided Mercator and other companies in the Mercator Group with a loan to refinance the debt of the Mercator Group in the amount of up to EUR 480 million (the “Loan”), financed by Fortenova by issuing notes in the nominal amount of EUR 385 million (the “Tranche C Notes”).

On 19 May 2021, Mercator and certain companies in the Mercator Group (Mercator BH d.o.o. Sarajevo, Mercator-CG d.o.o., Mercator – H d.o.o., Mercator IP, invalidsko podjetje, d.o.o, M - ENERGIJA, energetska družba, d.o.o., MERCATOR-EMBA, proizvodnja hrane, d.d.) acceded to the Subscription Agreement (as amended and restated, most recently on 16 April 2021, inter alia due to the issue of Tranche C Notes) and related documentation connected to the issued Fortenova notes, by which they, inter alia, in accordance with the applicable legislation, grant a limited guarantee and undertake to provide limited security (security has been and/or will be given today or in the following days) for the payment of liabilities arising from the issued Fortenova notes, in part in which the funds from the issued Fortenova notes were used for the financing of the Mercator Group (not more than the amount of EUR 385 million with all dues under the Loan). In addition to Mercator and Fortenova, the abovementioned companies of the Mercator Group and certain companies of the Fortenova Group are also parties to the documentation related to the issued Fortenova notes.

Also on 19 May 2021, security documents were signed with which Mercator additionally pledged certain real estate to Fortenova to secure the Loan, and M - ENERGIJA, energetska družba, d.o.o. assigned to Fortenova by way of fiduciary assignment certain current and future receivables due from Fortenova and Mercator group companies.

Since the transfer of the majority share of Mercator shares to Fortenova on 23 April 2021, Mercator and Fortenova are related parties within the meaning of Article 281.b(2) ZGD-1. Mercator had obtained consent of the Supervisory Board in accordance with Articles 281.c and 281.č ZGD-1, for the abovementioned transactions. This notice constitutes a public announcement of transactions with related parties in accordance with Article 281.d ZGD-1.

As of 20 May 2021, this announcement will also be published on the company's website at www.mercatorgroup.si where it shall remain for a period of at least 5 years.